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EXECUTIVE SUMMARY I. General: a. The Theme of the PLP – 2016-17 is ‘Accelerating the pace of Capital Formation in

agriculture and allied sector’. b. Morena district is situated in the eastern part of Madhya Pradesh. It has 07 blocks with

a total geographical area of 5017 sq. km. constituting 1.63% of the total area of the State. The average rainfall of the district is 707 mm per annum which precipitates in about 42 days. The district population (2011 Census) is 19.65 lakh with 15.51 lakh in rural areas. The population below poverty line is 2.80%. The Gross Domestic Product (GDP) of the district was 1.83% of the state GDP. The total irrigated area as a percentage to net sown area is 69.24%. As on 31.3.2014, there were 552 Small industries providing employment to1082 persons in the district.

c. Ground Level Credit Flow (GLC): Total GLC of the district under priority sector which was Rs.780.44 crore during 2012-13, increased to Rs.1413.00 crore during 2013-14 and further to Rs.1654.89 crore during 2014-15. The agricultural loans issued during the last three years were Rs.663.95 crore, Rs. 1078.44 crore and Rs.1178.39 crore respectively.

The disbursements under NFS (incl. OPS) during the above period were Rs. 116.49 crore, Rs. 334.55 crore and Rs. 374.70 crore respectively. The share of agriculture in GLC which stood at 76.32% in 2013-14 has decreased to 71.20% during 2014-15.

d. Highlights of banking benchmarks: The district has 229 bank branches with 62 branches of Commercial Banks, 11 branches of Gramin Bank, 9 branches of DCCB, and 136 PACS. The performance of banks in achieving the parameters stipulated by RBI was satisfactory. Submission of LBRs by banks has been satisfactory. Achievement under ACP 2014-15 at Rs.1654.89 crore formed 119% of the target. The performance under Financial Inclusion was also satisfactory, as the targets regarding coverage of villages through USB, appointment of BCs, number of transactions of BCs, etc., were achieved.

e. Sectoral assessment of potential: (i) The potential, under Priority Sector, in each

sector / sub sector for 2016-17 that could be tapped with institutional credit has been

assessed and presented in Exhibit I. The potential has been assessed at Rs.2251.34

crore for the year 2016-17 as against Rs.1942.33 crore for the previous year showing

15.90% growth. The potential under various sectors include crop loans at Rs.1235.60

crore, investment credit for agriculture comprising various sectors viz., Water Resources,

Farm Mechanisation, Forestry, Dairy Development, Poultry, Sheep/goat/piggery,

Fisheries, and Other activities at Rs.464.11 crore, MSME Rs. 312.78 crore , Education

29.70 crore, Housing 44.83 crore, Renewable Energy 0.97 crore and Social

Infrastructure Rs.18.90 crore. The shares of Agriculture, MSME, Education, Housing,

Renewable Energy, Social Infrastructure, and Others form 81.58%, 13.89 %, 1.32%,

1.99 %, 0.04 %, 0.85 %, and 0.33 % respectively. The potential has been assessed

keeping in view the GoI/GoMP’s priorities, existing/likely improvements in infrastructure,

past GLC, revision in SoF/Unit Cost and various subsidy schemes of GoI/GoMP.

II. Thrust areas and Developmental Initiatives of NABARD a. In order to realise the theme envisaged in the document, viz., Accelerating the pace of

Capital Formation in Agriculture and Allied sector, a few Area Based Schemes have been identified. The sector identified is Dairy. Tentative banking plans have been prepared for these activities. An estimated amount of Rs.160.92 lakh is expected to be financed by banks under these models. The models indicated are only pilots and it is expected that more such schemes will be prepared by banks.

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b. NABARD had also identified a few thrust areas for 2016-17 viz., JLG/SHG financing, micro warehousing, improving dairy development, Producer Organizations, etc. To promote the above areas, NABARD has also initiated several developmental activities in the form of support to Self Help/JLG Promoting Institutions, conduct of workshops, seminars, training camps, support to farmers clubs, FPOs, farm productivity improvement schemes, Natural Resource Management through Watershed, loan based training for NFS development, etc.

III. Infrastructure a. The district fares fairly well under some of the infrastructure indicators such as

electricity where the ranking of the district is better than the State average. However certain other indicators such as health and communication are lower than the State average. Incidence of poverty is higher than State average. Infrastructure facilities act as catalysts for development. Under RIDF XIII projects a cumulative loan component of Rs.10.07 crore was sanctioned by NABARD for the district covering mainly rural roads and school buildings projects.

b. In order to improve the credit off-take in the district, the State Govt. may consider improving the various critical infrastructure identified in the district viz., setting up of soil-testing laboratories in each block, strengthening the existing extension network, technology transfer, improving irrigation, popularisation of improved agricultural implements and machinery through demonstrations in farmers' fields, popularizing high density cropping systems, improving animal health care, activating/increasing the milk routes, establishment of poultry/fish hatcheries, establishment of fish markets, improving road network, uninterrupted power supply to the industries, etc.

c. There are certain critical infrastructure which can be supported through private investment in the district viz., setting up of warehouses, micro warehouses, cold storages/cold chains, etc. Banks have to play an active role in financing such investments.

IV. Conclusion: In order to achieve the overall credit potential assessed and in particular to enhance the capital formation in Agriculture in the district, there is a need to have a coordinated approach by all the stakeholders, viz., banks, Govt. Departments and NGOs. The reporting system by banks through LBRs, regular monitoring of achievements vis-à-vis the targets in DLCC/BLBC meetings assume greater importance. The implementation of SHG, JLG, RuPay enabled KCC and Financial Inclusion drive will ultimately result in achieving the various objectives of inclusive growth in the rural areas of the district.

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Appendix A to Annexure 1

Broad Sector wise PLP projections - 2016-17 ( ₹ Lakh)

Sr. No.

Particulars PLP projections

for 2016-17

A Farm Credit

i Crop Production, Maintenance and Marketing 23313.81

ii Term investment for Agriculture and Allied Activities 5874.66

subtotal 29188.47

B Agriculture Infrastructure 836.67

C Ancillary Activities 369.17

I Total Credit Potential for Agriculture (A+B+C) 30394.31

II Micro Small and Medium Enterprises 6984.00

III Export Credit 0.00

IV Education 708.00

V Housing 2506.00

VI Renewable Energy 175.01

VII Others 1650.00

VIII Social Infrastructure Involving bank credit 833.40

Total priority Sector (I to VIII) 43250.72

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Appendix B to Annexure 1 Summary of Sector/Sub Sector wise PLP projections - 2016-17

( ₹ Lakh)

Sr. No.

Sector PLP

projections 2016-17

I Credit Potential for Agriculture

A. Farm Credit

i Crop Production, Maintenance and Marketing 23313.81

ii Water Resources 579.02

iii Farm Mechanisation 1517.40

iv Plantation and Horticulture 480.41

v Forestry and Waste Land Development 176.23

vi Animal Husbandry – Dairy Development 1565.88

vii Animal Husbandry – Poultry Development 378.64

viii Animal Husbandry – Sheep, Goat and Piggery Development 244.05

ix Fisheries Development 676.72

x Other Activities 256.31

Sub Total 5874.66

Sub Total 29188.47

B. Agriculture Infrastructure

i Construction of Storage Facilities 296.26

ii Land Development, Soil conservation, watershed Development 233.21

iii Others 307.20

Sub Total 836.67

C. Ancillary Activities

i Food & Agro processing 289.17

ii Others 80.00

Sub Total 369.17

Total Agriculture (A+B+C) 30394.31

II. Micro, Small and Medium Enterprises

MSME - Manufacturing

i MSME Investment credit 1760.00

ii MSME working capital 616.00

Sub Total 2376.00

MSME - service

i MSME Investment credit 3840.00

ii MSME working capital 768.00

Sub Total 4608.00

Total MSME 6984.00

III Export Credit 0.00

IV Education 708.00

V Housing 2506.00

VI Renewable Energy 175.01

VII Others (loans to SHG/JLG, PMJDY etc.) 1650.00

VIII Social Infrastructure Involving bank credit 833.40

Total priority Sector (I to VIII) 43250.72

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BROAD SECTOR-WISE PLP PROJECTIONS – 2016-17

DISTRICT MAP OF MORENA

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